Trends

Question:     Is there a function in MS Excel that can be used to predict future sales based on past performance or sales trends?

Answer:        Yes, by using the Trend function

Description:   Returns values along a linear trend. Fits  a  straight line (using the method of least squares) to the arrays known_y’s and known_x’s. Returns the y-values along that line for the array of new_x’s that you specify

Syntax:         TREND(known_y’s, [known_x’s], [new_x’s], [const])

 Why:            To predict future sales based on past performance or trends              

Applies To: Excel 2003, 2007, 2010

  1.         The data below will be used for illustration purposes

 

 

 

 

 

 

 

2.         To predict the sales for periods 10, 11 and12

3.         Select cell B11 and enter; =Trend(B2:B10,A2:A10,A11:A13)

4.         The projected sales for periods 10, 11 and 12 will be as below;

 

 

 

 

 

 

 

 

The projected sales for periods 10, 11 and 12 can thus be estimated based on past trend or performance

Sage © Sage South Africa Pty Ltd 2016 . All Rights Reserved.